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Nov 9 2009   3:54PM GMT

More Novell cuts, follow Microsoft cuts

badarrow Barbara Darrow Profile: badarrow

If the recession is, in fact,  winding down, employment truly is a trailing indicator, with tech companies continuing to cut headcount.

Last week, both Novell and Microsoft cut jobs. Novell sliced 3% — or about 100 to 130 —  of its 3,900 employees, according to published reports. And it suspended company-paid 401K contributions, according to its 8K filing.

This is the second round of cuts from Novell this year. In February, the company said it would cut up to 100 from a total of 4,200 employees. Novell watcher Pam Derringer says last week’s layoffs follow significant losses in all divisions except the company’s Linux-focused Open Platform Solutions, which grew about 16% this year. The Linux is about a third of Novell’s total revenues. 

 Microsoft continued to pare back putting an additional 800 jobs on the block last week.  Last January, Bellevue, Wash.-based company said it would cut about 5,000 jobs over the next 18 months. It laid off some employees in January and launched another round in May.


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